History and future of financial planning

Recently on an episode of the “Orange Pill Addicts” podcast, I was talking to a financial advisor and asked the question, “What was the role of a financial planner before 1971?” Using the history of markets, legislation, and financial advice, here I examine how governments over the past 100 years have caused monetary turmoil while creating a market for financial planners. I also suggest what the role of a financial planner would look like in a sound financial environment.

To understand the history of financial advisory, we must start with a brief history of the markets as we know them. There were some early markets that appeared in Europe starting in Antwerp in the 1500s. The port of Antwerp found itself between the Germans, who traded in furs and rye, and the Italians, who brought gems from the Far East. The owners of the tavern in the city will provide shelter, while also helping travelers exchange goods with each other. Over time, they began to establish exchange rates and by the 16th century, they were trading more in promissory notes rather than exchanging commodities. Then, in Amsterdam in 1602, the Dutch East Trading Company became the first publicly traded company by going public with “all residents of these lands” and inviting all Dutch people to be able to invest.